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Oman's diversification efforts and the planned completion of major infrastructure projects are indicators of a positive outlook. (Shutterstock)
The International Monetary Fund (IMF) said it expects Oman to gradually increase nonhydrocarbon growth to about 4% in the medium term.
In a statement posted on its website Preliminary data on the execution of the Sultanate's budget indicate a significant improvement in the fiscal situation last year, the rise in oil prices and the restraint of spending. reduced the overall deficit. It is estimated that the current account deficit has improved by 3% of GDP, given the government's additional efforts to improve non-hydrocarbon revenues, the IMF's Executive Board has Is expecting the deficit to fall to four per cent. percent of GDP over the next two years.
Oman's banking sector seems solid, with banks characterized by high capitalization and a low rate of non-performance. Although credit growth to the private sector has slowed somewhat and interest rates are likely to increase with the normalization of US monetary policy, credit growth is expected to remain robust.
The IMF encouraged the government to accelerate reforms to strengthen fiscal and external sustainability, maintain confidence and support exchange rate anchors, and make deeper fiscal adjustments that are essential for fiscal consolidation.
The exchange rate peg has credited monetary policy with low and stable inflation Privatization in Oman will yield 700 million OMR by 2021
More than 3 billion dollars OMR remittances sent by expats to Oman last year
While non-oil growth is expected to recover gradually and the recent rise in oil prices is expected Twinning deficits lead to further increases in public and external debt over the medium term.
Nonhydrocarbon economic growth is expected to rise moderately in 2017 to around 2% from 1.5% in 2016. Oman has posted double-digit current and budget deficits in recent years, resulting in a sharp rise in public debt and external debt and lower external margins, reflecting lower oil prices.
The overall growth of real GDP was -0.3% due to a significant contraction in oil production of -2.8% due to the implementation of the agreement of the # 39; OPEC.
After Kudakwashe
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